OREANDA-NEWS. March 2, 2010. According to the resent Kriukivskyi Railcar Plant press service release, the Company generated a net profit of UAH 71.465mn in 2009. The current liabilities increased by 25.73% to UAH 324.09mn. As of late 2009, assets of the railcar plant increased by 9% and to reach UAH 1.656 bln.

Millennium Capital sees this news as negative for the Company, but it did not come to Millennium Capital as a surprise, because of earlier expectations of a decline in the financial results of Kryukivsky Railcar Plant in 2009. Millennium Capital would like to point out that the Company plans to increase its output in 2010 almost twofold on the background of an improvement in the situation at the railcar market. That is why Millennium Capital gives buy recommendation to KVBZ shares (you may look this recommendation up in more detail in Millennium Capital’s “Stable growth” trade idea).